IPL 2020 cancellation could put cricket in turmoil with $760m loss: Ex-COO Sundar Raman

coronavirus outbreak has massively impacted lives of people across globe. All major sporting competitions have come to a halt, which is why sporting organizations, leagues and teams alike, have suffered huge losses. much-anticipated IPL 2020 has been postponed indefinitely by BCCI currently as situation in country doesn't look promising. If IPL 2020 stands cancelled due to coronavirus crisis,  board is looking at a humongous financial loss.

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Former IPL COO Sundar Raman reveals consequences on  cricketing ecomy if IPL 2020 gets cancelled

w, IPL's first Chief Operating Officer (COO), Sundar Raman has reckoned that  impact of potential cancellation of IPL on world cricket ecomy will be severe. Sundar Raman was IPL's COO for first 8 years of competition and was a prominent figure in making IPL a brand that it has become today. Sundar Raman, who kws a great deal about IPL, spoke about consequences that cricket ecomy would face if IPL stands cancelled.

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While speaking to  Times of India, Sundar Raman said that cancellation of both  events (IPL 2020 & T20 World Cup) will have a serious impact on cricket ecomics for this year. However, in case of an ICC event, as contracts run through till 2023, deferring it to 2022 may be possible without loss of revenues. But t hosting an IPL or bilateral series of any country will lead to a loss in revenues, which is far from desirable.

Sundar Raman furr said that in an ideal world, ICC event scheduled in 2021 in India could be shifted to Australia as it is in same October window and India could host event in 2022 by creating a suitable window. This will give adequate time for ecomic recovery and t overcrowd calendar. 

Sundar Raman, who is presently CEO of sporting arm of Mukesh Ambani-led Reliance Industries, which also owns Mumbai Indians, added that IPL remains single biggest event for global cricket ecomy. With a contribution of around 1/3rd of global cricket revenues annually, importance of IPL cricket's global ecomy cant be overstressed. Raman claimed that with cricket's ecomy estimated at $1.9 billion, IPL contributes to 40% of its revenues, which comes to approximately $760 million.

When it comes to players' salaries annually, Raman opines that IPL alone contributes $100 million every year, which works out to broadcast revenues of 3-4 countries on an aggregate. As a result, he believes that re are two scenarios added for world cricket to look at - 1) Cricket could become a 'TV and digital only' sport from July 2020 onwards, with fans gradually brought back to stadiums in January 2021 (This would result in a 48% loss of revenues overall) or 2) Cricket could become a 'TV and digital only' sport from December 2020 and fans are allowed into stadiums from April 2021 (However, this would result in an estimated 88% of losses in revenues, out of which 36% would be in case of IPL 2020 getting cancelled).

He also said that if IPL was to be considered a separate cricket body and revenues from IPL were to be removed from Indian cricket board's revenues, IPL would emerge as biggest revenue generator for global cricket - higher even than ICC & ACC revenues combined.

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World cricket is severely dependent on India's tours to attract interest from Indian broadcasters and even big countries like England and Australia will also face dire situations if India tour had to be cancelled. Raman also said that India remains biggest force in world ecomy. Raman added that importance of India to world cricket ecomy cant be overstressed. Outside of Australia and England, who have large domestic market deals, both valued at US$1 billion each over a 4-year cycle, or cricket boards rely on Indian tours as part of bilateral fixtures to attract interest from Indian broadcasters.

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IM COURTESY: INDIAN PREMIER LEAGUE INSTAGRAM